Chainalysis launches a new compliance tool right before the upcoming requirements for digital asset transfers since the company is very skilled at tracking ERC-20 tokens when moved from hacked accounts. The service that explores the Ethereum network will now launch its special software as we are about to find out more in the Ethereum news today.
Chainalysis launches the new software for on-demand token analytics under the name Chainalysis Know Your Transaction or KYT which will help the digital assets to be compliant with the Financial Action Task Force requirements which are expected to come full force in 2020. The FATF rules are basically a document with recommendations which for the first time aimed directly at any cryptocurrency service provider including wallet builders and exchanges. The requirements will move far beyond cash movements and will go into monitoring the size and origins of crypto and transactions.
The crypto-based transactions were not tracked directly by any financial authority so far except in unusual cases. As more tokens are created and used for transfers of value, the analysis becomes much more important. The co-founder and chief strategy officer of Chainalysis Jonathan Levin commented:
‘’A robust compliance infrastructure is essential to underpin the growth of this rapidly expanding, global industry… By working closely with our customers and partners, we built a scalable platform that enables us to support more cryptocurrencies at a higher velocity.’’
The loss of tokens via hacks is also a major source of tokens but tracing them to exchanges is a very hard task and only a few startups have tried to do so. The Ethereum network grew to thousands of tokens and smart contracts which do pose a challenge to track the illegally acquired funds. Chainalysis is trying to track about 48 cryptocurrencies which represent about 90 percent of exchange volumes. The tool will add another 23 digital coins including Dash, XRP, ZCash, and Dogecoin. As explained in the cryptocurrency news, the tool will also cover the XRP transfers on the ripple network which will make it easier for the exchanges to transparently reveal the asset’s activity. The SVP of Xpring Ethan Beard commented:
“Chainalysis is the leader in blockchain analysis and compliance software.We are thrilled to partner with them to further promote the compliant use of XRP by exchanges, wallets, and financial institutions globally.”
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